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TUTORIAL 8 & 9 Solutions (Company Accounts (Part 2))

Q1.

7% Redeemable PS [300000*80%]
240,000

Premium on redemption [240000*0.2]
48,000

Bank [240000*1.2]

288,000

Share Premium
48,000

Premium on redemption

48,000

Retained Earnings
240,000

Capital redemption reserve

240,000

Q2. Gembira Bhd
Statement of Comprehensive Income for the year ended 30 September 2010

RM’000
RM’000
Revenue

5,200
Ccost of sales (W1)

(3,248)
Gross profit

1,952

Selling and distribution expenses (W1)
(489)

Administrative expenses (W1)
(1,174.5)
1,663.5
Operating profit

288.5
Finance cost (div RPS + Deb int = 4.5+24) (W2)

(28.5)
Profit before tax

260
Income tax expense

(80)
Profit after tax

180
Other comprehensive income

Gain on revaluation

300
Total comprehensive income

480
Gembira Bhd
Statement of changes in equity for the year ended 30 September 2010

Share capital Share Premium
Retained
profit
Revaluation
reserves

Total

RM’000
RM’000
RM’000
RM’000
RM’000
Balance @ 1/10/2009
2,500
60
561
Nil
3,121
Net profit for the year

180

180
Interim dividend paid

(50) 

(50)
Revaluation of land

300
300
Rights issue (W3)
125
6.25

131.25
Balance @ 30/9/2010
2,625
66.25
691
300
3,682.25

Statement of Financial Position as at 30 September 2010

RM’000

RM’000

Non-current asset

Property, plant & equipment (W4)

3,577

Current assets

Inventory
219

Trade receivables (478-8-23.5)
446.5

Prepayments
5

Bank (250000+131250)
381.25

1,051.75

4,628.75

Equities & Liabilities:

Authorised Capital
Ordinary Shares @ RM2 each
9% Redeemable Preference Shares @ RM1 each

√3,000
√80

Issued Capital

Ordinary share capital

2,625

Share Premium

66.25